Histologically, chalazion shows a typical appearance of lipogranulomatous
reaction - a form of chronic inflammatory reaction. Once you have made
the diagnosis, the examiner usually moves to a discussion of cells that
are seen in chronic inflammation especially the types of giant cells which
may give clue to the underlying condition.

The features to look for are:

multiple inflammatory cells surrounding clear spaces
(the clear space is the result of lipid which has been removed during processing).

presence of multinucleated giant cells.

Low magnification H&EPresence of inflammatory cells surrounding a clear space (where lipid has been removed during tissue preparation). The inflammation is a foreign body response to lipid
that leaks out of sebaceous glands or the glands of Zeiss.